In The Know Vol.21 - A Catalyst for Financial Inclusion: Mobile Money in Africa

Over the past two decades, mobile money has become a transformative force in Africa's financial landscape, driving financial inclusion by enabling millions of unbanked individuals to access financial services through their phones. The number of mobile money accounts has doubled in the past decade, supported by regulatory frameworks, international remittances, and growing acceptance of mobile-based payments. 

Mobile money has grown beyond peer-to-peer (P2P) transfers, with providers now offering financial products like credit, insurance, and savings. This expansion empowers underserved populations, especially women and rural communities, by providing a safety net for those previously without access to formal financial services. In Africa, mobile money enables seamless transactions for merchants and consumers, even in areas lacking traditional banking infrastructure. By reducing reliance on cash, it helps expand customer bases, driving local economic growth and allowing underserved populations to participate in the formal economy. 

EFT Corporation plays a key role in enabling mobile money across African markets like Zimbabwe, Zambia, and Ghana. By providing innovative POS systems, EFT Corporation allows banks and merchants to easily process mobile money transactions, enhancing convenience and expanding financial inclusion in both rural and urban areas. Beyond transaction facilitation, EFT Corporation helps banks optimise payment systems through seamless API integrations and advanced POS solutions. This bridges the gap between mobile money and traditional banking, ensuring accessible financial services and promoting financial inclusion, especially in regions with high unbanked populations.🚀   

36% of Gen Z Pick FinTechs Over Banks for Online Payments 

As digital solutions reshape the financial landscape, traditional financial institutions (FIs) face increasing competition from agile Fintechs. Younger consumers prefer personalised financial services that better meet their needs, prompting FIs to re-evaluate their offerings. Composable banking has emerged as a vital strategy, allowing institutions to mix and customise services for a more adaptive and customer-centric approach, marking a pivotal moment where flexibility and innovation are essential for survival.

Explore how composable banking can help traditional banks compete effectively against Fintech disruptors by providing the ability to integrate and innovate through an API-driven framework. Learn about the growing preferences of consumers for non-bank financial services, the obstacles that legacy systems pose for FIs, and the opportunities that composable banking presents for enhancing customer experiences. By delving into industry insights and statistics, this article highlights the urgent need for traditional banks to embrace composable solutions to remain relevant in a rapidly evolving market. 

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EFT Corporation and Visa partner to bolster fintech growth in Africa 

EFT Corporation has partnered with Visa in a transformative five-year collaboration aimed at revolutionising Africa's digital payments landscape and enhancing financial inclusion. This initiative invites fintechs across the continent to join an exclusive program designed to accelerate their growth by leveraging EFTCorp's established platform and extensive reach. Visa is investing $1 billion in Africa to support the predicted growth of 250 million new consumers by 2030, making this partnership a crucial step toward digital transformation. 

With over 20 years of experience in Africa, EFTCorp offers comprehensive banking capabilities, enabling fintechs to scale their operations while relying on its world-class support. The collaboration will provide participants access to tailored prepaid and debit card programs, with EFTCorp serving as the program manager and issuer processor. Clayton Hayward , Group CEO of EFTCorp, emphasises the mutual benefit for all involved, as the partnership strengthens both companies' brands and expands their footprint across Africa. Aida Diarra from Visa highlights the alignment of their missions, aiming to deliver innovative payment solutions that enhance financial inclusion and uplift economies across the continent. 

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Wibmo and EFT Corporation partner to strengthen payment security in South Africa 

EFT Corporation has partnered with Wibmo , a PayU company, to introduce the Wibmo Areion 3DS Server (3DSS) in South Africa, enhancing digital payment security and efficiency. Announced at the Seamless South Africa event, this collaboration aims to strengthen online transaction safety through advanced authentication protocols and a streamlined payment process, ensuring a seamless experience for consumers and businesses. 

This partnership is set to transform the South African payment landscape by offering scalable and reliable solutions that cater to the evolving needs of the market. Both Ashley Mathura from Wibmo and Darryn Van Rooyen from EFT Corporation expressed enthusiasm about the collaboration, emphasising its potential to set new standards in the fintech industry and create a safer, more efficient payment environment for all users. 

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Kenya Fintech Roundtable  

Together with Visa , EFT Corporation hosted a successful Roundtable in Nairobi, Kenya, on Friday, 27 September 2024, aimed at fostering growth in the region through collaboration with valued partners. The event focused on addressing challenges in the payments landscape and exploring opportunities to enable seamless and innovative payment solutions together. 

Key insights included the regulatory and operational challenges fintechs face in markets like Kenya, South Africa, Zimbabwe, and Ghana, as well as the critical role of seamless API integrations to simplify compliance, core switching, and customer onboarding. The Visa Passthrough Program was a central topic, focusing on how Visa and EFT Corporation are simplifying fintech integrations through API-driven platforms, making it easier for fintechs to access key services and enter new markets. 

Attendees engaged in discussions on revenue models, market expansion, and pricing strategies, with a particular focus on the role of virtual cards, subscription services, and cross-border transactions. The roundtable emphasised the value of strong partnerships in the fintech space and reinforced EFT’s commitment to providing tailored solutions that address both the commercial and technical needs of fintechs in the region. 

KOFISI on the Future of Banking – Podcast  

Tune into the latest episode of the KOFISI - Centres of Productivity podcast, where Patrick Awori engages with Tawanda Wenyika from EFT Corporation and Caroline Kitema from Absa Bank Kenya to explore the future of banking, digital payments, and financial inclusion. Tawanda discusses how EFT Corporation simplifies complex banking technologies through scalable solutions like digital onboarding and banking as a service, empowering banks to innovate seamlessly. The conversation also highlights the challenges and opportunities in the Kenyan banking landscape, including the shift from cash to mobile payments and the importance of collaboration across the industry. Discover how these financial services providers are transforming banking experiences and fostering inclusivity in the digital era. 🚀 

🎙️Listen to the podcast using the links below:  

YouTube 

Spotify   

KOFISI on the Future of Banking – Member Event

EFT Corporation's CCO, Carlin Wicomb , participated as a panellist at the KOFISI - Centres of Productivity Future of Banking Member Event, with valuable insights from MOSES OKUNDI , Caroline Kitema , Agnes Muthoni , Steven Omamo and Eric Muli , moderated by Patrick Awori . The event, held at KOFISI Square, explored emerging technological advancements shaping the future of banking. Panellists discussed the impact of AI on customer experience and operational efficiency, the practical applications of blockchain beyond cryptocurrency, and the potential of other emerging technologies like quantum computing and IoT. The key takeaway emphasised the need for fintechs and banks to collaborate strategically, embracing technology while fostering human connections to remain relevant in a rapidly evolving financial landscape.  

How to improve customer-centricity in the financial services sector without compromising quality or profitability  

The financial services sector is undergoing a significant transformation as traditional banking services increasingly migrate online, providing new opportunities for institutions to gather data on customer habits and preferences. This data can be leveraged to develop customer-centric products and services that align with consumer needs. At the forefront of this change is the rise of Banking as a Service (BaaS), allowing both financial and non-financial companies to enhance their offerings. Our latest blog explores the essential need for a customer-centric approach in banking, emphasising how to align business objectives with customer expectations without compromising quality or profitability. 

Gain insights from Jon Causier on the common myths surrounding customer-centricity and shared strategies for effective product alignment. Discover how to foster engagement through personalised experiences, the importance of understanding distinct customer segments, and effective monetisation strategies that extend beyond pricing. Learn about practical approaches to enhance customer-centricity in the financial services sector, ensuring they remain competitive in a rapidly evolving market. 🚀

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